Eurasia Mining plc (LON:EUA) says its application for a mining permit for the Monchetundra project in Russia is progressing much quicker than expected.
The authority on mining, Rosnedra has now approved a draft of the permit and has forwarded the relevant documents to the ministry for defence (MOD) and Federal Security Service (FSB) for their go-ahead.
READ: Eurasia Mining has two million PGM ounces in the ground, and a finance deal to get them out
"We are very pleased with this result and the efficiency of the officials at Rosnedra in processing this application," said Christian Schaffalitzky, the executive chairman at Eurasia.
"The experience of our staff in Russia, gained from successfully processing a similar mining permit for our West Kytlim Project has proven invaluable.
"We look forward to providing further positive news in due course."
Monchetundra, on the Kola Peninsula, is a major platinum group metals (PGM) and base metals project with state approved reserves plus resources of 2mln ounces of palladium equivalent of PGM with further base metal and gold credits.
READ: Eurasia Mining lodges mine permit for Monchetundra
Under Russian standard C1 and C2 categories, the project hosts 55.9 tonnes (about 2mln ounces) palladium equivalent (predominantly palladium) at two open-pittable locations, West Nittis and Loipishnune.
These pits also contain significant gold and base metal credits including 28,124 tonnes of copper and 30,410 tonnes of nickel.
An EPCF (engineering, procurement construction and financing contract) to develop the mine has already been inked with Sinosteel - a state owned Chinese group.
Meanwhile, discussions continue with other third-party service providers over operating the mine.
Eurasia wants to emulate the contract mining arrangement at West Kytlim by contracting it to a reputable international specialist company with experience in Russia.
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